Marketing: SWOT Analysis


Marketing: SWOT Analysis
Marketing: SWOT Analysis
What is a “SWOT Analysis?
• a SWOT analysis is a tool that analyzes an
organization and its environment.
It is one of the first stages in the marketing plan
process and helps marketers focus on key issues
• Discover new opportunities
• Manage and eliminate threats
• SWOT stands for
W eaknesses
Strengths and weaknesses are internal factors.
Opportunities and threats are external factors
• What is the business good at ?
• What is it you do better than your competition?
A new or innovative product or service
Location of your business
Low prices
High Quality
• What is the business doing wrong?
• What does your competition do better than you?
• What should you avoid?
Undifferentiated products or services (i.e. in relation to your compet
Location of your business
Poor quality goods or services
Areas where the company could take advantage of to
improve their situation (trends, technology, etc.)
A developing market (ie – Internet)
Moving into new market segments that offer improved profits
A market vacated by an ineffective competitor
A new international market
• Anything that could feasibly harm your business
• Situations that could lead to lost business
New competitor in your home market.
Price wars with competitors.
A competitor has a new, innovative product or service.
• By performing a SWOT Analysis, a company can see
where they are positioned relative to their competition
• A SWOT analysis may provide ideas for:
• “opportunities”
» see and validate a “gap” and create a product / service to fill it)
• “caution”
» it may force you to reconsider or completely stop an idea from
continuing (competition is too fierce, product idea isn’t “different”
enough, etc.)
• A great “analogy” for a SWOT analysis is that of the
great “do I dive into the pool or not” scenario…..
• You have several options:
1. You can just dive in ……
(therefore don’t do your research or SWOT analysis
and live with the results……)
You can put your toe into the water to gather
information and make a decision………
(therefore you do your research and base your decision to move
forward or not based on your SWOT analysis of the pool)
Ie –
it is warm so you jump in
It is cold so you decide to stay out and wait for the
environment or water to heat up….and then reassess
It is too cold so you decide to stay out and cut your losses
• As a result, performing a SWOT analysis is
simply making the decision as to whether or
not we’re going to jump into the pool or back
off and do more research……..
• So, now that we know what a SWOT analysis
is, let’s do one for the ……..
Nintendo Wii
• Nintendo brand recognition (well known worldwide)
• Wireless Wii Remote – can detect 3 D motion (only one of its
kind)….differentiates from competition (joystick / gamepads)
• Cheaper than competition….$250 vs $399(Xbox) and $500
(PlayStation 3)
• Slower processor vs competition
• No hard drive
• No DVD drive
• Weaker graphics vs competition
• Created new “niche” market / new video game
experience….create new games and experience that can’t be
• Less processing / No DVD capability = less costs = ability to
sell for less than competition
• Competition copycat “new” idea
• Competition creates new technology that improves
upon Wii “experience”
As a result, Nintendo’s SWOT analysis showed that their product
was different and that there was evidence that the product
should move forward
• Although further research must be conducted as the product
moves through the rest of the marketing mix, the SWOT
analysis supports Nintendo’s competitive position both as a
company and for this specific product
All busineses can profit from performing a SWOT analysis
A SWOT analysis is a continual process….the business
environment is continually changing
By understanding your situation, you can proactively make
business decisions for both the present and future to ensure
The End!!